Wednesday, May 24, 2017

What is a Culture-Driven Company & Why is it Important to Be One?

A Culture-Driven company starts with a CEO that believes in starting with culture.  These CEO’s talk about people, values and behaviors daily and value their people as the most important part of the company.  They know that it is all about people and how they behave.  They are also the ones who "walk the talk". 

We estimate only about 5% of companies are Culture-Driven Companies.  Why should you be Culture-Driven?  According to John Kotter from Harvard Business School, culture-driven CEO’s who are really effective at driving a great culture throughout the organization have 3x more profit per employee, 4x faster revenue growth and 50% less turnover. 

The stocks of these companies also perform amazingly, returning more than 100% more than their peers.  If you had invested in Southwest Airlines for a 30 year period from the early 1970's to the early 2000's a $10,000 initial investment would have been worth more than $12 million.  This is one of the best performing stocks over a 30 year period ever and even though its a low cost airline their focus on culture is famous.  

In addition to financial return, these companies are just better to work for because people feel appreciated and that leads to better morale, happier customers and a better place to work and make a long term contribution.  Do you want to be a Culture-Driven company?

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